Understanding Contra Costa County’s Transfer Tax: A Quick Guide
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
If you’re selling a home in Contra Costa County, you might have questions about transfer taxes. Is there even a Contra Costa County transfer tax? This post will serve as a quick guide to explain what transfer taxes are, who is responsible for them, and what you can expect to pay when selling or buying a home in Contra Costa County.
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What are transfer taxes?
Real estate transfer taxes are fees assessed when the ownership of real property, for example, a home, is transferred between two parties.
The Federal Trade Commission defines transfer taxes as a “state or local tax payable when title to property passes from one owner to another.”
When you pass the title of your home — your legal right to own the property — to someone else, the government charges a tax on this exchange.
The municipality where the property is located will determine what you’ll owe in transfer taxes according to local state, county, or city guidelines. Like other taxes, these are designed to generate revenue.
Who pays for transfer taxes?
In Contra Costa County, generally, the seller is responsible for paying any real estate transfer taxes. There are some exceptions depending on the city, which we will discuss in the next section.
What are the types of transfer taxes?
Transfer taxes will typically vary based on local guidelines but can generally be broken down into three categories — state, city, and county, depending on the state. Here’s a quick look at how it works in Contra Costa County.
State transfer taxes
In California, transfer taxes are levied at a rate of $0.55 per $500 of the property’s sales price.
County transfer taxes
Transfer taxes in Contra Costa County are levied at a rate of $0.55 per $500 of the property’s sales price.
City transfer taxes
If you’re selling a property in Richmond or El Cerrito in Contra Costa County, you are subject to additional transfer taxes. Additionally, transfer taxes in these cities are split between the buyer and the seller.
- Richmond (% of purchase price):
- $100 to $999,999: 0.7%
- $1,000,000 to $2,999,999: 1.25%
- $3,000,000 to $9,999,999: 2.5% $10,000,000 and above: 3%
- El Cerrito-$12.00 per $1,00000
Other transfer fees
In addition to transfer taxes, there are possible fees to consider, such as from a homeowner’s association or another local neighborhood organization. Again, as these can vary heavily based on location, it’s important to consult a professional.
If you’re selling your home for sale by owner, consulting a professional might help with some of the finer points of the process and give you a better idea of what you can expect.
Are transfer taxes deductible?
Transfer taxes are, unfortunately, not eligible for tax deduction.
However, you might be able to lower the amount you pay in capital gains taxes.
Capital gains, defined as the profit obtained from the sale of your home or the financial gain from selling your property, are subject to federal taxation just like profits from the sale of other assets.
Sellers have the option to treat paid transfer taxes as selling costs, allowing them to subtract these from their home’s closing sale price, according to the IRS. By doing so, they can diminish the capital gains taxes owed on any profit earned.”
Transfer tax exemptions
You may be eligible for certain transfer tax exemptions. Here is a list of some that you might qualify for in Contra Costa County:
- Liens and encumbrances equal or exceed the value of the property
- Value of the property is less than $100
- Transfer from agent to principal, with funds of the grantee used to purchase the property
- Lease of less than 35 years
- Governmental agency acquiring the title
- Transfer by reason of death
For a complete list of exemptions, consult the Contra Costa County website.
Estimating transfer taxes for your home sale
Want a quick estimate of what you’ll make from your home sale? Try HomeLight’s Net Proceeds Calculator. It factors in your expected closing costs — including transfer taxes, agent commissions, and renovation expenses — to give you a clearer picture of your bottom line.
Connecting with a top real estate agent is a good idea if you want a more accurate estimate tailored to your location and transaction. An experienced agent can help you understand how much you’ll owe in transfer taxes and whether those costs might be negotiable depending on the local market.
Editor’s note: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of Contra Costa County area tax services or attorneys should not be considered endorsements.
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